J. S. VERMA, C. J. - (1.) THIS order shall dispose of both these references.
(2.) THESE references under Section 256 (1) of the Income-tax Act, 1961 are at the instance of the Revenue in respect of the same Assessee for the assessment years 1969-70 and 1970-71 for answering the following questions of law, namely:- "assessment year 1969-70 "whether on the facts and in the circumstances of the case the Tribunal was justified in cancelling the penalty order passed under sec. 18 (1) (c) holding that the Inspecting Asstt. Commissioner had no jurisdiction to levy the said penalty of Rs. 3,70,733/- on 2. 3. 1977 ? Assessment year 1970-71 "whether on the facts and in the circumstances of the case the Tribunal was justified in cancelling the penalty order passed under sec. 18 (l) (c) holding that the inspecting Assistant Commissioner had no jurisdiction to levy the said penalty of Rs. 3,95,333/- on 2. 3. 1977?" The Assessee filed a Wealth tax return for the assessment year 1969-70 on 23. 7. 1971 showing the net wealth of Rs. 2,55,219/ -. The assessment was completed on 5. 1. 1973 on net wealth of Rs. 4,19,514/ -. This assessment was cancelled by the Commissioner of Wealth-tax and a fresh assessment was made on 5. 3. 1975 on the net wealth of Rs. 5,19,370/ -. The Wealth-tax Officer initiated penalty proceedings under sec. 18 (l) (c) of the Wealth-tax Act and referred the case for levy of penalty to the I. A. C. of Wealth-tax on 16. 12. 1976. By an order dated 2. 3. 1970 the I. A. C. imposed penalty of Rs. 3,70,333/ -. Similarly, for the assessment year 1970-71, the Wealth tax return was filed by the Assessee on 23. 7. 1971 declaring the net wealth of Rs. 3,08,614/ -. Ultimately, the assessment was made on 5. 3. 1975 on net wealth of Rs. 7,83,720/- for this assessment year. The Wealth-tax Officer initiated proceedings under section 18 (l) (c) of the Wealth tax Act for this year and referred the matter to the I. A. C. on 17. 1. 1977. On 2. 3. 1977 the I. A. C. imposed a penalty of Rs. 3,95,333/ -. The Tribunal has upheld (he Assessee's contention that the I. A. C. had no jurisdiction to impose penalty by the order passed on 2. 3. 1977 for both these years after the deletion of earlier sub-section (3) of section 18 of the Wealth-tax Act, 1957 with effect from 14. 1976 by the Taxation Laws (Amendment) Act, 1975 and its substitution by new sub-section (3 ). Hence these references at the instance of the Revenue. We have already held in number of Income-tax matters relating to imposition of penalty under section 271 (l) (c) read with section 274 of the Income tax Act, 1961 that after the amendment made in section 274 by deletion of subsection (2) thereof by Taxation Laws (Amendment) Act, 1975 with effect from 1. 4. 1976, the I. A. C. had no jurisdiction to impose penalty in references made by the I. T. O. subsequent to 1. 4. 1976; and that it is only the references pending before the I. A. C. prior to 1. 4. 1976 in which the I. A. C. had jurisdiction to make the order. This was on the ground that the determining factor is the date of making reference, so that only the references made to the I. A. C. prior to 1. 4. 1976 were saved for being decided by the I. A. C. and not these references which were made by the I. T. O. subsequent to 1. 4. 1976. We have taken this view in the Incom-tax matters involving the same point following the view taken in C. I. T. vs. Ram Prakash Saraf (1 ). The same view has to be taken in respect of the corresponding provisions in the Wealth-tax Act. It follows that the I. A. C. in respect of both these assessment years had no jurisdiction to impose penalty after the above change in the Wealth-tax Act in the references made by the Wealth-tax Officer on 16. 12. 1976 and 17. 1. 1977 i. e. after 1. 4. 1976.
(3.) CONSEQUENTLY, these references are answered against the Revenue and in favour of the Assessee by holding that the Tribunal was justified in cancelling the penalty for both these years for the reasons given by us. No costs.;